• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Mortgage rates this week

  • The average rate on a 30-year fixed mortgage is up to 6.32% this week
  • The average rate on a 15-year fixed mortgage is up to 5.41% this week

30-year fixed-rate mortgages

The average 30-year fixed mortgage rate increased to 6.32% this week, up from an average of 6.12% last week. A year ago at this time, the 30-year rate averaged 7.57%.

15-year fixed-rate mortgages

The average 15-year mortgage rate increased to 5.41%, up from an average of 5.25% last week. This time a year ago, the 15-year fixed rate averaged 6.89%.

Stop overpaying for home insurance

Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.

Officialhomeinsurance can help you do just that. Their online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.

Explore better rates

Mortgage rate trends

See how mortgage rates have changed over the last three months. The average 30-year mortgage rate hit a high of 6.89% the week of July 11, while the average 15-year mortgage rate topped out at 6.17%, the same week.

Week of 30-year mortgage rate 15-year mortgage rate
October 10, 2024 6.32% 5.41%
October 3, 2024 6.12% 5.25%
September 26, 2024 6.08% 5.16%
September 18, 2024 6.09% 5.15%
September 12, 2024 6.20% 5.27%
September 5, 2024 6.35% 5.47%
August 29, 2024 6.35% 5.51%
August 22, 2024 6.46% 5.62%
August 15, 2024 6.49% 5.66%
August 8, 2024 6.47% 5.63%
August 1, 2024 6.73% 5.99%
July 25, 2024 6.78% 6.07%
July 18, 2024 6.77% 6.05%
July 11, 2024 6.89% 6.17%

What’s behind current mortgage rate trends?

Inflation: The current inflation rate is 2.9%, compared to 3.0% last month. Mortgage lenders often demand higher interest rates to compensate for the eroding purchasing power of money due to inflation.

Federal funds rate: The federal funds rate is set by central bank officials, and it’s the interest rate that banks charge one another for borrowing money. Central banks adjust key interest rates to control inflation or stimulate the economy, and mortgage rates can follow suit. The current federal funds rate is at 4.75% to 5.0%.

Need cash? Tap into your home equity

As home prices have increased, the average homeowner is sitting on a record amount of home equity. Savvy homeowners are tapping into their equity to consolidate debt, pay for home improvements, or tackle unexpected expenses. Rocket Mortgage, the nation's largest mortgage lender, offers competitive rates and expert guidance.

Get Started

How mortgage rates affect your monthly payments

Say you’re buying a $500,000 property, have a 10% down payment and lock in a 30-year fixed mortgage at today’s average rate of 6.32%. Using a mortgage calculator, your monthly mortgage payment would be $3,772 a month, not including property taxes and insurance.

When buying a home, keep in mind that most lenders want you to keep your housing expenses at or under 30% of your gross income. Based on your income and expenses, use this calculator to find out how much home you could afford at today’s mortgage rates.

Mortgage application demand decreases

Demand for mortgages decreased 5.1% this week from a week earlier, according to the Mortgage Bankers Association (MBA).

Meanwhile, the Refinance Index decreased 9% from the previous week and was 159% higher than the same week one year ago.

"The decision to buy a home is impacted by many factors, not just the level of mortgage rates. The largest constraint for many prospective homebuyers over the past year had been the lack of inventory," said Mike Fratantoni, MBA’s SVP and Chief Economist.

"Now, there are more homes available in many markets across the country, and with mortgage rates still low compared to recent history, at least some potential homebuyers are moving ahead.”

Should you buy a home at the current mortgage rates?

With the current 30-year fixed mortgage rate at 6.32%, you might wonder if now is the right time to buy a home. To help you make the best decision, ask yourself a few questions.

Am I financially stable? Reflect on your current financial situation, including your income, job stability, and overall financial health. Use a mortgage income calculator to determine what monthly mortgage payment you could comfortably afford. Remember to factor in property taxes, insurance and maintenance costs.

Where do I see myself in 5, 10 years? Imagine yourself five, 10, 15 years from now. What does your career look like? Are you in the same city/state? Thinking about your long-term plans can help you determine if buying a home at today’s mortgage rates is a good idea or not.

How’s my credit score? Your credit score plays a significant role in the interest rate you'll be offered. If it’s on the low end, you may want to focus on boosting your score. With a higher credit score, you can qualify for the best mortgage rates available.

Sponsored

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

What's Next

Leslie Kennedy Senior Content Editor

Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.